RE:Argonaut Gold Snubs Shareholders With Financing That Will Di
The link to thedeepdive.ca post says it all, management failed the current shareholders and although I cannot influence, in any way, voting at an annual meeting, ALL of the Board of Directors must be shown the door because they had a fiduciary duty to the sharehoders and they failed miserably.
Now, barring this happening, I am shocked that no gold company has stepped up to purchase the whole $195m share offering and take control of this turd and show everyone the door!!!
For those who heeded the warnings of some of us here and did not take a position in this disaster, now is your opportunity if you believe in the operational skills of the new CEO but be warned that the current management does not have your best interests in mind. The current valuation is a steal if you believe in competent management which I do not but like I said earlier I was waiting for the chance to average down and get my money out at $1.00 a share and I stand by that while I'm holding my nose.
Now for the risks that you will not find in any of the fundamentals. Ausenco took an equity position in AR when they signed on to do the work. That position is now forever underwater and if any have dealt with contractors, I don't know how motivated they will be to complete the work. Hope I am wrong. Second, AR promised improvements in the US operations that they acquired from Alio which have not materialized. Further, if you delve in the notes of the financial statements you will see that they are in legal disputes with the contractor who carried out that work.
This company is poorly run and not sure things will change quickly with the new CEO, but if this company experiences operational difficulties at start-up, this puppy is going to $0.00.
You have all been warned of the risk. As stated before, always do your own due diligeance and good luck to us all!!!!